Part 2: Community Development Dues and HOA Notification

Part 2: Community Development Dues and HOA Notification

 A Community Development District is a special district created to serve the long-term specific needs of a community.  Community Development Dues (CDD), also known as Community Facilities Dues (CFD) and Community Improvement Dues (CID), is a charge used by developers to help pay for public improvements in a community.

Below are examples of what CDD fees can cover:

– street and sidewalk maintenance: repairing potholes, fixing sidewalks, cleaning gutters

– lighting: installing new light fixtures, replacing burnt-out bulbs on streetlights

– landscaping: planting trees, keeping grass trimmed and mowed

– home protection: alarm systems for homes in neighborhoods with high crime rates

– public safety patrols

CDDs are classified as property taxes assessed by the state and levied against each parcel of land that an HOA regulates. Therefore, CDDs must be paid by every parcel owner regardless of whether they use the property on which it is imposed or not.

Under Florida Statute 720.3085, before an HOA foreclosure case can be filed, the HOA must provide the homeowner with proper notice of their intent to record a lien. The notice must be sent at least 45 days prior to recording the lien. The notice must include details of the amount owed and an opportunity to pay the amount before filing foreclosure. The notice must meet all the requirements outlined in the Statute. As such, if you are involved in a real estate transaction, and there is an outstanding Community Development Dues balance on your property, you should consult with an attorney before finalizing the purchase of the property.

Feel free to reach out to Property Debt Research for all your municipal lien search and estoppel research needs.